The real estate market here in Placer County has been a roller coaster in 2022.
During the first third of the year, the vast majority of homes were sold in weeks, rather than months, their asking prices were bid up, multiple offers were the norm, and home buyers were forced to accept terms that often left them with no appraisal contingency, no opportunity to request that items be repaired after inspections, and no control on how the process unfolded.
Many buyers that had homes to sell of their own, or that had unconventional or less appealing finance requirements, were often unable to compete on the most sought-after homes and in many cases were left without a home after many, many offers.
The middle third of the year was a period where the ball was hovering in mid-air but had yet to fall. A period of time where sellers were still hoping to sell for what their neighbor got in March, where days on market began to creep up, and where the lopsided requests that sellers had gotten used to asking of buyers stopped working.
As we now wrap up the final third of the year, the advantage has now swung fully into the home buyers’ hands.
In November, 90% of homes sold for at or below their original asking price, 90% of homes sold with two offers or less, and the average home sold for 7% less than it was originally listed for and 2% less than its asking price at the time of the offer.
Average and median sales prices are only down 2-4% compared to a year ago, but the 10 to 15% run-up in prices during the first half of the year has been evaporated.
As a homeowner, your first reaction may be to see this as all negative news.
The reality is that most homeowners who would like to sell are also going to become home buyers.
While things have certainly gotten worse for sellers over the past six months, they have also gotten considerably better for home buyers.
You may have to work harder, be more flexible in negotiations and be more open to making repairs to sell, but the same will be true in reverse if you are buying.
You now have a real shot when making an offer on a home with all the amenities you have been looking for. You may even be able to get a discount from the asking price if it has been sitting for a while.
In many cases, you will also have an opportunity to fully inspect the home, request repairs if there is something major wrong, and have the opportunity to have the home appraised and possibly renegotiate if that appraisal is less than you offered.
The reality is that the last few years and the beginning of this year have been incredibly unbalanced in the seller’s favor.
Balance is being restored and the good news is that you can take advantage of it.
If you are considering buying or selling a home, or if you have a real estate problem you need help finding a solution for, let me know.
Helping people reach those goals and solve those problems is what I love to do.
Posted by Patrick Hake on